Alloy maker Materion beats Q2 sales estimates

Overview

• Materion Q2 net sales beat analyst expectations, reaching $431.7 mln, per LSEG data

• Adjusted EPS for Q2 exceeds analyst estimates, reflecting strong operational performance

• Co achieved record adjusted EBITDA margin and expanded semiconductor footprint in Asia

Outlook

• Materion affirms full-year adjusted EPS guidance of $5.30 to $5.70

• Company expects strong second half with improving market dynamics

• Materion focuses on above-market growth and new business opportunities

• Company sees continued uncertainty in tariff environment

Result Drivers

• RECORD MARGINS - Achieved record adjusted EBITDA margin of 20.8% due to strong operational performance and structural cost improvements

• ASIA EXPANSION - Completed acquisition to expand semiconductor footprint and capabilities in Asia

• MARKET STRENGTH - Strength in aerospace & defense, energy, and non-China semiconductor markets partially offset declines in PMI shipments and sales into China

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• Wall Street's median 12-month price target for Materion Corp is $120.00, about 23.3% above its July 29 closing price of $92.06

Press Release: ID:nBw7vBtbha